How can you retire at 45?

Retirement at 63

There for you around the clock!

Can you retire with no deductions?

Flexible pension account

Intelligent system for single premiums

Exclusive benefit for all users

Now until June 30th Take out the Flexible Pension Plan and get a 15 Euro voucher receive.*

Please wear your Promotion code "FINANZEN2021" during the online transaction in the "Review and Submit" step.

Calculate now

The pension with 63 (old-age pension for particularly long-term insured persons) has existed since the pension package came into force on July 1, 2014. This is particularly beneficial for those insured who have paid into the statutory pension scheme for at least 45 years. They are referred to as particularly long-term insured persons. Are you one of them? In the guide you will find out the most important things about retirement at 63, how to avoid discounts and what alternatives there are.

The guide provides general information on statutory pension insurance. You can find product details on flexible provision here.

Product Information

Requirements for the pension from 63

  • You were born before January 1, 1953.
  • You were insured in the statutory pension insurance for at least 45 years.
  • You will retire after July 1, 2014.

For all those with long-term insurance who born after December 31, 1952 the earliest possible start of the pension will be postponed. You can no longer retire from the age of 63, but have to add two months per year. If you were born after January 1, 1964, you can retire after 45 years of contributions without any deductions if you have reached the age of 65.

Which periods are taken into account in the old-age pension for those with long-term insurance?

The focus of every pension calculation is the individual employment history. This is no different with the 63-year-old pension. All times to which the following circumstances apply are taken into account.

  • Compulsory contributions for employment or self-employment
  • Contributions for mini jobs paid by the employee and employer. Contributions for mini jobs that are only paid by the employer are taken into account on a pro rata basis.
  • Voluntary contribution periods during employment or self-employment of at least 18 years
  • Periods of military or community service
  • Time taken into account for non-commercial care of relatives
  • Times for raising children up to their 10th birthday
  • Consideration times due to the receipt of social benefits such as unemployment and partial unemployment benefits, sickness and injury benefits, transition benefits
  • Replacement periods in which contribution payments were prevented for special reasons, such as political imprisonment in the GDR

Which periods are not taken into account for the retirement at 63?

To avoid a wave of early retirement are Periods of unemployment right before retirement regulated separately. Anyone who becomes unemployed within the two years prior to the start and receives unemployment benefit does not acquire any entitlements for this period. This period is only taken into account if the applicant's company has become insolvent or the employer has completely given up its business.

The following periods are also irrelevant for the start of retirement after 45 years of contribution payment:

  • Compulsory contributions while receiving unemployment benefit II or unemployment assistance
  • Times of pension equalization after divorce
  • Times of pension splitting between married couples or registered partners

From retirement at 63 to retirement at 65: Gradual increase in the retirement age

The discount-free pension at the age of 63 only applies to birth cohorts up to and including 1952. In addition, the pension must not have started until July 1, 2014 at the earliest. Retrospective adjustments are not possible. Anyone born after December 31, 1952 has to work longer: The retirement age is gradually being raised by 2 months for each year of life. In the long term, the pension at 63 becomes the pension at 65. This applies to all cohorts from 1964 onwards. Condition: You can only retire after 45 years with no deductions if you have reached the age of 65.

Gradual increase in the retirement age to 65 years

  • Source:

Pension at 63: With deductions also possible for long-term insured persons

For long-term insured persons there is also the option of retiring at the age of 63. For this, insured persons need an insurance period of 35 years. In contrast to the 63-year-old pension for those who have been insured for many years, deductions apply. For each month that you retire earlier, 0.3 percentage points are deducted from the monthly pension amount. The maximum possible discount depends on your year of birth.

Age limit: Anyone born before 1949 can normally draw the pension for long-term insured persons from their 65th birthday. Drawing a pension at the age of 63 causes a discount of 7.2 percent. For those born between 1949 and 1963, the retirement age will gradually increase. From 1964 onwards, it is 67 years. It is also possible for long-term insured persons to draw the pension at the age of 63. The discount is 14.4 percent.

Raising the age limit for long-term insured persons

  • Source: 1

Confidentiality Regulations

Regulations on the protection of legitimate expectations ensure that changes to the law are made gradually. According to these regulations, some insured persons are excluded from the gradual increase in the age limit to 67 years. Under certain circumstances, you can retire before the statutory age limit - with little or no discounts. For example, insured persons who:

  • were born before January 1, 1955 and agreed to work part-time with their employer before January 1, 2007.
  • Received adjustment allowance for dismissed miners.

Your age limit will not be increased. You can continue to retire at the age of 65.

In order to fully or partially compensate for reductions in the pension for long-term insured persons, from the age of 50 you can make special payments to the pension insurance. Information about the amount of the contributions will be given by the responsible pension insurance agency upon request. If there is an entitlement to a disability pension, the pension reductions cannot be compensated by special payments. If you do not take advantage of the early retirement despite having made special payments, the payments will be taken into account in your later retirement. A payout of the special payments is not possible.

Alternatives to retirement with 63 without deductions

Those who retire earlier at their own expense can of course only do so if they have the financial means to bridge the period up to regular retirement. The deductions may seem small at first, but they add up if, for example, you take early retirement two years before the regular start. Depending on the salary, it can be a lot of money. But there are opportunities to fill in the gaps in early retirement.

The flexible pension was decided by the Bundestag and Bundesrat in October 2016 and is entered into force on July 1, 2017. The model is intended to make the transition from working life to retirement more flexible and to make it more attractive to work beyond the standard retirement age. In the past, there was an upper limit of 450 euros per month for additional earnings. With the flexible pension, you can earn up to 6,300 euros per year with an early retirement pension without having to accept any pension losses. 40 percent of all amounts beyond this are offset against the pension.

Do you enjoy your work and want to work beyond the normal retirement age, it can also be worthwhile. For every month that you work longer, you will receive a pension supplement of 0.5 percent. If you extend your working life by a year, the result is an increase of 6 percent. The additional contributions to the pension insurance also increase your pension entitlement.

Anyone who has reached the regular retirement age can earn an unlimited amount of money on top of their retirement.

If you do not have the opportunity to retire at 63 without any deductions, partial retirement can be an option for you. The model is intended to enable older employees to have a smooth transition into retirement. From the age of 55 you can cut back on your career and only work half of your previous working hours.

Important: There is no legal right to partial retirement. The funding from the Federal Employment Agency only applies to partial retirement contracts that were concluded before December 31, 2009. The elimination of the subsidy has made partial retirement more expensive and less attractive for companies. If you are interested in partial retirement, you need one individual agreement with your employer to meet. Under certain circumstances, however, regulations on partial retirement are contained in collective agreements or works agreements. You may also benefit from the current shortage of skilled workers. Because it can be interesting for companies to keep experienced employees in the company for longer. Find out in good time and talk to your employer.

A basic distinction is made between two models of partial retirement:

  • Block model: A distinction is made between the work phase and the release phase. During the work phase, the employee works full-time, but the employee receives a reduced salary. In the release phase, the employee is released and continues to receive his reduced salary up to the statutory retirement age. If, for example, partial retirement is agreed for a period of six years, you will only work for the first three years.
  • Equal distribution model: The employee continues to work continuously until retirement. Half of the working time is spread over the entire period, with individual priorities being possible, depending on the agreement with the employer. He can work 30 hours one week and only 20 hours the next. As a result, in addition to classic part-time employment, project-related work is also possible, for example.

The prerequisite for switching to partial retirement is that the model at least three years is taken. In addition, partial retirement must be planned in such a way that it ends when the statutory retirement age is reached. In principle, partial retirement can be agreed individually with your employer.

Here you collect over several years Extra work (for example through overtime or unused vacation days). This time does not expire at the end of the month or year, as is often the case, but is "credited" to you as in a bank account. Older employees can take the "saved" time right before they enter regular retirement - without having to fear financial disadvantages. Social security protection is also retained during the exemption phase before retirement. Since credit balances can only be managed in money by law, the accumulated working time is converted into monetary units. This means that you can also have one-off payments and overtime payments credited.

The working time account can also be in the form of a "Credit balance" transferred directly to the Deutsche Rentenversicherung. However, the transfer does not change the fact that taxes and social security contributions are incurred. In principle, certain requirements must be met for the transfer. For example, only credits can be transferred that, including the employer's contribution to social security, amount to six times the monthly reference value. In the old federal states the threshold in 2019 was 18,690 euros, in the new federal states it was 17,220 euros. In addition, the employment relationship in which the credit was acquired must be terminated for the transfer.

The advantage of the transfer to the Deutsche Rentenversicherung: The credit does not expire if you become unemployed or switch to an employer who does not support this "savings model".

  • Mini job: Since 2013 mini jobs (450 euro jobs) are subject to pension insurance. Although these activities do not contribute too much to the amount of the pension, they are considered to be the regular waiting period for the old-age pension and are taken into account in the same way as "normal" employment relationships when determining the minimum insurance period.
  • Child rearing times / periods of consideration: